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Question 1 Discuss how volatility in the USD/GBP FX market changed after derivatives were introduced. (2 points.) Draw a graph with Change in price on

Question 1

Discuss how volatility in the USD/GBP FX market changed after derivatives were introduced. (2 points.)

Draw a graph with Change in price on Y-axis and Years on the X-axis that depicts volatility over time. (3 points.)

Discuss 2 different ways that derivatives can be used in the USD/GBP FX market. (2 points.)

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